GlassHouse Technologies, Inc., a provider of independent storage services and consulting, today announced it has received $7.1 million in a Series C round of funding led by Kodiak Venture Partners. The capital will be used to support the company’s growth, allowing GlassHouse to capitalize on its first-mover market advantage as it works with clients to establish predictability and manageability in client storage and IT environments.
“GlassHouse’s significant footing in the enterprise storage services market makes this an exceptional investment opportunity for us,” said Chris Greendale, Venture Partner at Kodiak Venture Partners. “GlassHouse has a firm understanding of enterprises’ business problems, a clear leadership position, and a team capable of delivering an economically compelling solution that transforms storage from a cost center to a business driver. I am pleased to have had the opportunity to work with the GlassHouse management team to build the company from its inception and excited that Kodiak will be supporting GlassHouse as the company enters its next growth phase and capitalizes on its success thus far.”
GlassHouse has gained extraordinary traction in the marketplace, securing large contracts with top-tier companies such as: Biogen; Pitney-Bowes; The Aerospace Corporation; Corporate Communications Broadcast Network; The Guardian Life Insurance Company of America; Brockway-Smith; Hartz Mountain Industries; the State of Washington; and numerous other businesses that add to the company’s roster of well over 300 clients in the financial services, health care, bio-pharmaceutical and technology market sectors.
“GlassHouse has experienced impressive growth during a very difficult economic period,” said Mark Shirman, CEO and President, GlassHouse Technologies, Inc. “We are approaching profitability and had no plans to raise additional capital, but we were overwhelmed with interest from the venture community. This investment gives us the opportunity to capitalize on our leadership position and continue to move aggressively to provide a much-needed set of services to companies under pressure to make the most of investments in IT. We are thrilled to have the opportunity to partner with Kodiak, a firm known for the operational expertise it brings to the table and the ability to build market leaders.”
Returning investors include Sigma Partners, GrandBanks Capital and Globespan Capital Partners (formerly Jafco Ventures). This most recent round of funding brings venture investment in the company to $15 million since its founding in August 2001.
The investment will be used to fund the company’s continued worldwide growth as it develops service methodologies, tools, IP, and outsourced service offerings to complement its existing services and consulting business. The company also plans to acquire services and consulting companies in developing markets and geographies as it broadens its ability to serve clients worldwide. Since December 2002, GlassHouse has opened new offices in Minneapolis, MN, Santa Clara, CA, New York City, NY, and Durham, NC, and expanded its staff and resources internationally. GlassHouse’s senior management team recently managed the acquisition of Auspex Systems’ worldwide services and support business, adding more than 300 support clients worldwide.
About Kodiak Venture Partners
Kodiak Venture Partners is a Waltham, Massachusetts-based venture capital firm focused on seed and early stage investments in emerging communications/IT, semiconductor and software companies. With a focus in the eastern regions of the U.S. and Canada, Kodiak Venture Partners builds relationships with entrepreneurs seeking accelerated market success. Kodiak’s investment partners are successful high-technology business entrepreneurs who take a high-impact, hands-on approach to forming, operating, building and funding market leaders. For more information, visit www.kodiakvp.com.
About Sigma Partners
Sigma Partners is a high tech venture capital firm with over $1 billion dollars under management. The Sigma team has previous experience as successful CEOs, entrepreneurs and technologists. With this deep operating and technical background Sigma builds teams and strategies that produce sustainable value and successful outcomes. Because of the firm’s extensive knowledge and experience in the fields of computers, electronics, software, and communications, Sigma invests primarily in technology-based companies. Sigma tends towards early stage investments because of the value that the firm can bring to the process of building teams, strategies and markets. Sigma was an early investor in companies such as Cascade, Vignette, Internet Security Systems, Vermeer Technologies (creators of FrontPage) and Tradex. For more information, visit Sigma’s web site at www.sigmapartners.com.
About GrandBanks Capital
GrandBanks Capital is a newly formed venture capital firm, established in partnership with SOFTBANK and Mobius Venture Capital (formerly SOFTBANK Venture Capital). GrandBanks Capital focuses on making early stage technology investments primarily located in the eastern part of the United States. Headquartered in Newton Center, Massachusetts with offices in New York City, GrandBanks Capital seeks to leverage the strength of the strategic relationships provided by SOFTBANK’s extensive and worldwide portfolio of companies. www.grandbankscapital.com.
About Globespan Capital Partners
With offices in Palo Alto and Boston, Globespan Capital Partners is an independent venture capital firm focusing on information technology. Globespan has a unique position in the U.S. venture capital industry due to its ability to provide portfolio companies access to Asian customers and partners. Globespan manages several funds, including JAFCO America Technology Fund III and Globespan Capital Partners IV. Some of the firm’s investments include Aptis, Argon, Avanex, Brocade, Digital Island, edocs, Monterey Networks, Net Perceptions, Obsidian, Ocular, Pirus, Sentient Networks and Silknet Software. For more information, visit www.globespancapital.com.
About GlassHouse Technologies, Inc.
GlassHouse Technologies, Inc. provides services that help organizations solve the business problems of enterprise storage. From strategy through deployment and support, GlassHouse partners with clients to transform storage into a strategic advantage. GlassHouse clients include Biogen, Hartz Mountain Industries, Pitney-Bowes and The Guardian Life Insurance Company of America. For more information about GlassHouse call508-879-5729, or visit www.glasshouse.com.
